Ownership Breakdown
| Retail Investors20.64% | Insiders72.89% | Institutions6.47% |
| Retail Investors | 20.64 | |
| Insiders | 72.89 | |
| Institutions | 6.47 |
Should you hold on to your FAT Brands position?
 | By Raphi Shpitalnik | Macroaxis Story |
FAT Brands (NASDAQ: FAT) has been making waves in the Consumer Cyclical sector, specifically within the Hotels, Restaurants & Leisure industry. Despite a challenging year, the company has shown resilience with a quarterly revenue growth of 8.5%, generating a gross profit of $141M. However, it's worth noting that the company reported a loss in diluted EPS of 7.98 and an estimated loss of 3.8 for next year's EPS. The change to net income stands at a significant $78.8M. On the other hand, FAT Brands boasts an impressive enterprise value of $1.4B. The stock's day typical price is 6.89, slightly above its valuation real value of 11.12. Despite the negative price action indicator of -0.09, Wall Street's target price for the stock is an optimistic 25. With a dividend yield of 0.0806, it may be time to consider strengthening your position in FAT Brands. The company's robust performance amidst industry challenges indicates potential for future growth. As more conservative investors are venturing into the hotels, restaurants, and leisure space, FAT Brands could be on your radar. Why do we maintain confidence in the hope for a swift recovery? This article aims to highlight some fundamental factors affecting FAT Brands' products and services. Furthermore, I will also reveal how these factors may influence the investment outlook for FAT Brands in August.
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Reviewed by Rifka Kats
FAT Brands Inc., a prominent player in the restaurant industry, has seen some turbulence in its financial performance. The company reported a net loss of $126.2 million and a negative net interest income of $94.8 million. Despite these setbacks, FAT Brands' revenue per share stands at a promising $25.18, hinting at a potential recovery. However, the diluted EPS is reported at a concerning -7.98, which could impact investor confidence. On a brighter note, the company's risk-adjusted performance stands at 0.0541, suggesting that the company is capable of delivering returns while managing risk. The current quote for FAT Brands stock is $6.85, which is significantly lower than Wall Street's target price of $25. Considering these factors, it might be time to consider strengthening your position in FAT Brands stock, especially if you believe in the company's potential to bounce back from its current financial woes.
A deeper look at FAT
Approximately 73.0% of the company's shares are held by insiders of FAT Brands. The insider ownership of FAT Brands pertains to the portion of the company's equity owned by its officers, directors, relatives of the leadership team, or any individual who has access to confidential information before it is released to the public. For our latest analysis of FAT, including its current ownership diagnostics, please check out our most recent report.The performance of FAT Brands in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence FAT Brands' stock prices. When investing in FAT Brands, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, FAT Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as FAT Brands carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.And What about dividends?
A dividend is the distribution of a portion of FAT Brands earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. FAT Brands dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. FAT one year expected dividend income is about USD0.42 per share.
Dividends Paid is likely to gain to about 17.2 M in 2024, whereas Dividend Yield is likely to drop 0.15 in 2024. | Last Reported | Projected for Next Year | ||
| Dividends Paid | 16.3 M | 17.2 M | |
| Dividend Yield | 0.16 | 0.15 | |
| Dividend Payout Ratio | (0.21) | (0.20) | |
| Dividend Paid And Capex Coverage Ratio | (1.08) | (1.03) |
Investing in dividend-paying stocks, such as FAT Brands is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in FAT Brands must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for FAT Brands. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.How important is FAT Brands's Liquidity
FAT Brands financial leverage refers to using borrowed capital as a funding source to finance FAT Brands ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. FAT Brands financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to FAT Brands' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of FAT Brands' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between FAT Brands's total debt and its cash.
FAT Brands Gross Profit
FAT Brands Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing FAT Brands previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show FAT Brands Gross Profit growth over the last 10 years. Please check FAT Brands' gross profit and other fundamental indicators for more details.
Breaking down FAT Brands Indicators
FAT Brands holds a total of fifteen million four hundred sixty-one thousand eight hundred outstanding shares. FAT Brands shows majority of its outstanding shares owned by insiders. An insider is usually defined as a corporate executive, director, member of the board or institutional investors. class="underlinedLink" href="/invest/ratio/FAT/Shares-Owned-by-Institutions">institutional investor who own at least 10% of the company's outstanding shares. 72.89 percent of FAT Brands outstanding shares that are owned by insiders denotes they have been buying or selling the stock in recent months in anticipation of some upcoming event. Please note that no matter how much assets the company secures, if the real value of the entity is less than the current market value, you may not be able to make money on it.
FAT Brands Inc, a prominent player in the Consumer Discretionary sector, specifically in the Restaurants industry, has been making waves in the NASDAQ exchange under the code FAT. With a market capitalization of 116.61M and an enterprise value of 1.4B, the company has been demonstrating a strong financial position.Despite a negative earnings per share of 7.98, indicating a loss, the company has shown promising signs of growth with a quarterly revenue growth of 0.085. The company's total asset stands at 1.21B, with net assets also at 1.21B, demonstrating a strong balance sheet. However, the company's current ratio of 0.41X indicates a potential liquidity risk. This is further underscored by the company's high total debt of 1.12B and a probability of bankruptcy standing at 52.48%. In terms of ownership, institutions hold 6.47% of the shares, while insiders hold a significant 72.89%. The company's short ratio stands at 1.43X with 58.42K shares shorted, indicating a moderate level of short interest. Despite the challenges, FAT Brands Inc has shown resilience with a quarterly earnings growth of 112.056. As the company continues to navigate the market, investors may want to consider strengthening their position in FAT Brands stock. .
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